Batangas State University

Managerial Economics

ARTICLE : KFC’s Explosive Growth in

China
SITE : Harvard Business School
AUTHOR : Maggie Starvish
DATE PUBLISHED : June 17, 2021

A. SUMMARY
The article revolves around the case study written by David Bell and Mary
Shelman about how KFC, an American fast-food giant, conquered China. It may not
sound as impressive as it seems but in comparison to McDonalds, the largest fast-
food chain in the world, failed miserably to market themselves in China while KFC has
opened more than 3,000 stores with “one new restaurant opened a day” as said in the
article. This is thanks to the creative minds of those at Yum! Brands, the parent
company of KFC and a certain person named Sam Su, the China division chairman
and CEO of KFC in China.
According to article, it was due to Su that KFC has managed its way to be one
of China’s most beloved fast-food establishments. His out-of-the-box way of marketing
KFC is what made it connect to the hearts and stomachs of the Chinese population.
Su’s strategy was to change the image of KFC from a foreign restaurant of that similar
to a Chinese family restaurant. By incorporating Chinese culture and cuisine to the
Colonel’s brand, it became more welcoming towards the local community. Another
part of his master plan is to adapt KFC’s business model to suit the Chinese culture.
Obtaining ingredients locally, hiring locals and fresh graduates, making sure that they
are treated properly, and promoting camaraderie are some of the main points that Su
focused on. All the minute changes all came together to make a KFC nothing like
anywhere else in the world. It is as if KFC had a separate identity in China.
Even after its success in penetrating the market, KFC is continuing to adapt to
the Chinese market in a long-term perspective. According to the article, KFC China
responded to the high obesity rate caused by fast-food by altering the menu to include
healthier options as well as exercise programs for everyone, young and old. Su’s
understanding of the Western and the Chinese market has been a great help to Yum!
Brands in its mission to bring its finger-licking good chicken everywhere in the world.
Indeed, KFC has done what was seemingly impossible and they did it so well that they
wouldn’t ever worry about KFC losing popularity in the Chinese market.
B. ARTICLE POINT OF VIEW

As a reader
I am amazed as to how KFC has found success in such an unusual way. Most
companies would not stray from their identity at the same extent as KFC just to
penetrate a specific market since this would incur higher costs along with higher
consequences in case of failure. They have researched their target market extensively
and adapted the brand to the findings. It is even more impressive to know that they
have integrated their operations in the country so much that it looks like KFC
originated from China itself. It goes to show that trying something unconventional can
sometimes bring even more success than the traditional way of doing things.

As a student
From a BSA student’s perspective, I am delighted to see such strategy that
KFC has done since its similar to what is taught in school. Learning the market,
adapting to it, and planning long-term are present in KFC’s strategy. What’s
unexpected for me was their choice of adapting the very image of KFC to the local
market instead of making their traditional aesthetic familiar to the locals. Although
brands like Starbucks have adapted their stores to look like they belong to the area,
you would still know that they’re Starbucks. In KFC’s case however, not only do their
physical stores are none like those in America, the very menu is tweaked to fit the
tastes of the Chinese consumer. This attention to detail is something that I never
thought would happen in such a large company.

As a Future Manager or a Decision Maker

working in a related industry
What Sam Su has done can be considered as an inspiration to me as a future
manager. Not only through hard work but by connecting with your peers that we can
make the most of our jobs. By understanding the market that we are trying to enter
and thinking differently, we can get the results that we want. This article serves as a
reference to me if ever I were to have a similar position to Mr. Su.

C. ARTICLE EVALUATION
The article did not present a problem. Rather it serves one purpose, and it was
to show how an American company has managed to do the impossible. Penetrate
China’s very strict market and become so successful that their brand opens up a new
branch every single day. They did this through unconventional means but still rooted
to the basics of marketing. How homogeneity is not always the best way to market
your growing brand and by bending the company’s identity without losing itself are
also part of the article’s body. The sheer effort of adapting a well-known brand to fit
such a specific market and reaping the rewards. KFC’s strategy to feed the mouths of
the Chinese people is revolutionary and must be followed by others if they want to
succeed in China.
D. ARTICLE ANALYSIS
To make the article more relevant now, it would be interesting if there were a
new case study about another company following KFC’s footsteps and whether they
would have the same result. Replicability is an important aspect of research and
whether such strategy can be implemented in other markets and other business types.
Another one is to update how KFC dealt with the impact of COVID-19 towards
businesses this past year. Since the pandemic caused lockdowns and the temporary
closure of establishments, it would be relevant to know how KFC managed the issue
knowing that they have a lot of branches.
E. ARTICLE RELEVANCE
The article’s relevance relates to the importance of market research and that
penetrating a market is difficult regardless of the size of the entity. The adaptation of
traditional marketing methods towards more diverse ways is becoming a trend and
companies must follow quickly to not lose against the competition. In this ever-
changing market, thinking out of the box is not uncommon anymore. However, this
does not mean that the traditional ways are all obsolete. Sometimes tweaking the
basics can go a long way towards success.
Submitted by : BEN RYAN M. TOREJA
BSA - 3103